Newfoundland Bankruptcy Exemptions

What Assets Can I Keep When Going Bankrupt in Newfoundland?

Newfoundland Bankruptcy exemptions set out the equity in your assets that may be kept when going bankrupt or filing a consumer proposal.

For an example of the Newfoundland bankruptcy exemptions please consider this situation:

You own tools that are used in your business that are valued at $12,000 and you have a loan of $3,000 that is secured against the tools then you own $9,000 of equity in the tools of the trade you own.

In Newfoundland, since the exemption for tools used in your trade or business is $10,000, and you own only $9,000 of the value in the tools and it is below the exemption level you are allowed to keep these tools for your business and your creditors will not be able to take this asset if you declare bankruptcy or make a proposal to your creditors.

The Newfoundland and Labrador Bankruptcy Exemptions:

  • Food required by debtor and dependents during the next 12 months;
  • Medical and dental aids required by debtor and dependents;
  • Domesticated animals which are kept as pets and not used for business purpose;
  • Fuel or heating as a necessity for the debtor and his or her dependents;
  • Clothing of the debtor and his or her dependents, of a value totaling $4,000;
  • Appliances and household furnishings (which are defined as washing machine, clothes dryer, reasonably necessary bedroom suites and bedding, oven and stove top burners, necessary and dishes and kitchen utensils, and necessary; strollers, cribs and highchairs), of a value totaling $4,000;
  • Motor vehicle of the debtor, value totaling $2,000;
  • Items of a sentimental value to the debtor, a value totaling $500;
  • The debtor’s equity in his or her principal residence, $10,000;
  • Pensions;
  • RRSPs, Registered Retirement Income Funds (RRIFs) and Deferred Profit Sharing Plans (DPSPs);
  • Personal property used by and necessary for debtor to earn income from occupation, trade, business or calling, $10,000.


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